Financial support / BAFA funding

BAFA funding 2024 simply explained

Your guide through the funding jungle: Find out about the BAFA funding programs and secure the maximum grants for your renovation. Bonus: step-by-step instructions including expert tips for your BAFA application!

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What is BAFA funding? the essentials in brief

The BAFA funding is a government support program for energy and climate protection. It has been offered by the Federal Office of Economics and Export Control since 2021 and supports private individuals, companies, and municipalities with grants to finance individual renovation measures. The funding programs for the energy-efficient renovation of real estate are part of the “Federal Funding for Efficient Buildings (BEG)”.


How to apply for funding in 6 steps

01

Find an energy consultant

The funding application raises many questions. What documents do I have to submit? What information is required? And the pressure is enormous: If you fill out the application incorrectly, in the worst-case scenario you will lose five-figure grants.

02

Obtain offers from craft businesses

Next, obtain several offers and cost estimates from qualified tradesmen for your desired project.

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Attention: You may only officially commission a specialist company after you have submitted the application for funding! As soon as you have placed an order, this is considered the start of the measure - funding is then no longer possible.

03

Submit an application for funding & start the measure

Submit your application for funding online now. Once that's done, you can also place the order for your individual measure to the craft business of your choice - let's get started!

04

Have the application checked and receive notification of funding

The office will now check your application and contact you if you have any questions or missing information. After successful verification, you will receive the positive funding notification by post.

05

Submit proof of use

BAFA would like to find out more about your measure. Submit the proof of use via the portal. You must submit the following documents:

  • Proof of your expenses in the form of invoices and a list of expenses
  • Specialist contractor declaration from your selected craft business
  • Proof of use form
  • Confirmation of truthful information
  • Technical project proof (TBP) from your energy consultant

06

Final verification and payment of your grant

In the last step, BAFA checks your proof of use. If the check is positive, the office will issue the assessment notice - your subsidy will be paid out!

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Tip: Are you planning several renovation measures as part of the BEG EM? Then a single application is sufficient for all measures.

Would you like to save even more time and nerves? Then our energy consultants will take care of the application for you and secure you the full amount of funding.

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No more waiting - an expert will come to your home within 14 days to record data.

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Understand and use savings potential

With our technology we can calculate exactly which measures are worthwhile and how much can be saved

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Guaranteed to secure maximum funding.

With our renovation roadmap, you will receive a 5%* funding bonus for 15 years without any obligation to implement it.

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Table of contents

BAFA funding at a glance: What funding programs are there in 2024?

Requirements for BAFA funding – What do you have to consider?

Requirements and application: This is how you secure your funding

Common mistakes when submitting an application – and how to avoid them

How much money can you save with possible BAFA funding?

Current changes to the BAFA funding programs

BAFA funding at a glance: What funding programs are there in 2024?


The Federal Office offers various funding for switching to energy-efficient technologies and systems, for energy-saving measures and for the use of resource- and energy-saving heating methods. You can also apply for funding for specialist planning and construction supervision by an energy consultant.

The two central programs are the “Federal Funding for Efficient Buildings – Individual Measures” and the “Federal Funding for Energy and Resource Efficiency in the Economy – grants”.

Federal funding for efficient buildings – individual measures (BEG EM)

The BEG is an important pillar of the federal government's 2030 climate protection program. As part of the BEG EM, BAFA subsidizes individual measures

  • on the building envelope (e.g. insulation)
  • on system technology (e.g. installation of ventilation systems)
  • on systems for heat generation (e.g. construction of a building network)

in residential buildings (WG) and non-residential buildings (NWG).

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Danger:

Since January 1, 2024, subsidies for heating replacement, for example for heat pumps, solar thermal systems, or biomass heating, can no longer be applied for from BAFA. As a homeowner, you must now submit your heating funding application to KfW.

Anyone who wants to invest in the eligible measures is eligible to apply for this program. This means that private and commercial homeowners are supported, as are municipalities, non-profit organizations, and contractors (e.g. energy service providers).

The following individual measures will be covered under the BEG EM by the new BAFA funding 2024:

In addition to funding individual measures, BAFA also subsidizes so-called accompanying measures. For example, if you have your roof re-roofed to save energy, you can also have the associated roofing work funded.

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Tip:

Would you like to renovate your house into an efficiency house or are you planning to buy a newly renovated efficiency house (according to BEG WG)? Then the current KfW funding is just right for you!

Can several individual measures be funded?

The program is limited to funding individual measures such as replacing an old heating system. But that doesn't mean that you can only have a single measure funded - on the contrary.

You can also implement several individual measures one after the other and thus gradually renovate your house - and at the same time receive a further 5 percent funding (see Fig. 1). In order to receive this funding, you need a so-called individual restructuring roadmap (iSFP).

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Particularly practical: The Federal Office supports the creation of your iSFP with up to 80 percent of the eligible costs.

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Inquire for free

Federal funding for energy and resource efficiency in the economy – grant

In addition to the BAFA funding according to BEG, the Federal Office also offers grants for small and medium-sized enterprises (SMEs). BAFA supports commercial applicants, among other things

  • the switch to energy-efficient processes
  • the switch to renewable energies in production
  • the use of alternative drive technologies
  • energy consulting for (non-)residential buildings, facilities, and systems

Would you like to find out more about the BAFA programs for companies? You will find what you are looking for on our pages for business customers!

Requirements for BAFA funding – What do you have to consider?


In order to successfully submit an application for state funding under the BEG EM, you must meet a few requirements:

  • You are the owner of the building to be renovated.
  • If you are not, you must inform the building owners before submitting your application.
  • Your renovation property is in the Federal Republic of Germany.
  • You must use the funded facilities or renovated parts of the building for their intended purpose for at least 10 years after the measure has been completed.
  • The renovation is carried out by a professional company.
  • Depending on the measure, support from an energy consultant is mandatory.
  • As a service recipient (contractor), you conclude a contracting agreement with the executing company (contractor).
  • The contracting agreement must comply with the requirements of the BEG guidelines.
  • Your renovation project must meet the minimum technical requirements.

Requirements and application: This is how you secure your funding


In order to receive BAFA Hub funding for real estate, some general requirements apply. You need to

  • be of legal age at the time of application
  • have a German residence
  • provide German bank details
  • have a regular income
  • can demonstrate sufficient creditworthiness
  • pursue an energy-efficient construction project
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Notice

There is no minimum income for bafahub loans. However, the funding amount and the project itself must be proportionate to your existing income or assets so that you can repay the loan in the long term

Depending on the program, other specific criteria also apply to your financing project.

Checklist: You need these documents for funding from BAFA

To apply for BAFA funding according to the BEG EM, the following documents are required:

  • icon Cost estimates for the measures to be supported
  • icon the specific funding amount
  • icon proof of collaboration with an energy consultant
  • icon the Technical Project Description (TPB) with an explanation of the proposed measure
  • icon the technical project description ID

Common mistakes when submitting an application – and how to avoid them


Funding for new windows or the use of renewable energies for heating is an enormous financial relief for your renovation project. To give you the best chance of receiving a positive decision, you should avoid the following mistakes:

  • Incorrect information: Small carelessness such as incorrectly filled out information in the application or errors in invoices can have expensive consequences. For example, if the investment address or even just the date is incorrect, in the worst case scenario you will be denied the subsidy.
  • Investment costs calculated incorrectly: A renovation project can quickly become more expensive than planned. You must take these additional costs into account in your application. There are also eligible additional costs that are often forgotten
  • Overlooking the limits of eligible costs: BAFA currently supports a maximum of 60,000 euros per residential unit or 1,000 euros per square meter for non-residential buildings. If you do not adhere to these limits, funding is not possible.
  • Missing applications: With the individual renovation roadmap you can apply for several measures in a single process. However, depending on the measure, complex projects, or several buildings, you may have to submit multiple applications. Find out in advance how many applications you actually need for your entire project.
  • Duplicate applications: The funding programs are subject to constant changes. It is not unusual for the funding rates to change from one year to the next. Some applicants then make the mistake of submitting a second application for the same measure. Such duplicate applications will be rejected - even if the individual applications were approved.
  • Incomplete documents: BAFA will examine your application in detail. It is therefore important that you submit documents such as transfer receipts, specialist contractor declarations, site plans, and much more completely and on time. Therefore, keep all documents and proactively check whether anything is missing.
  • Technical evidence is missing: Make sure you can provide all evidence of compliance with the minimum technical requirements for your application. If you do not submit this, submit it incompletely or too late, your application will be rejected.
  • Deadlines are not met: BAFA strives to provide you with the best possible support in your renovation project. This is why we often ask if there is missing information or changes in the application. Make sure that you communicate with the office in a timely manner. If you do not meet the deadlines, your application will be rejected in the worst-case scenario.

How much money can you save with possible BAFA funding?


Renovation measures are expensive. But given rising energy costs and advancing climate change, there is no way around it. The energy transition must come - and as a homeowner you can make an important contribution to it.

Thanks to BAFA funding for heat pumps or new windows, you don't have to make the investment alone. The amount of funding depends on many factors:

  • What do you want to promote?
  • What condition is your house in?
  • Which old systems are available?

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Inquire for free

Which costs are eligible?

The funding of system technology, the renovation of the building envelope, or the heating funding from BAFA covers various eligible costs.

This includes:

  • Acquisition costs of the new systems or components
  • Installation and commissioning costs
  • Costs of the necessary environmental measures
  • Promotion of specialist planning and construction support by energy consultants

The BAFA 2024 funding level for individual measures is currently limited to a maximum of 60,000 euros per year per residential unit for residential buildings. For non-residential buildings, the eligible costs are a maximum of 1,000 euros per square meter of net floor area. A total of up to 5 million euros can be funded. In addition to the maximum amounts, there is also a lower limit. You have to invest at least 2,000 euros to receive the grant.

Tax bonus instead of BAFA subsidy?

In addition to the BAFA subsidy or KfW funding, there is another savings option: the tax bonus. In principle, all work that is eligible for funding from KfW or BAFA can also be claimed for tax purposes. If you would like to use this option, certain requirements apply for funding:

  • Your property must be a single-family home or multi-family home that is at least 10 years old.
  • You must live in the house yourself.
  • A maximum of 20 percent of the eligible costs can be taken into account up to a maximum of 200,000 euros (max. 40,000 euros in funding).
  • Otherwise, the same funding criteria apply as for BAFA and KfW.
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Notice

The tax bonus cannot be combined with other funding programs.

You can also save money with tax incentives for combined heat and power (CHP) systems such as fuel cells and combined heat and power plants. If you operate such a system with gas, you can have the energy tax refunded. You currently receive up to 0.55 cents per kilowatt hour. Systems that run on oil are excluded from this funding. If you want to secure a refund, you must apply for it at the main customs office. It can be combined with funding from BAFA and KfW.

Current changes to the BAFA funding programs


Since the beginning of 2021, the "Federal Funding for Efficient Buildings" (BEG) has been bundling the previous state funding options. Old programs such as the KfW's CO2 building renovation program and the BAFA's "Heating with Renewable Energies" offer have been brought together under the umbrella of the new BEG.

As part of the BEG EM, the BAFA only supports individual measures in existing buildings. However, you can apply for a loan from KfW if you want to renovate your new building into an efficient house. There is no longer any funding for individual measures in new buildings per se. To this end, the funding rates for certain measures were increased in 2024.

Another innovation is that BAFA has simplified the application process. You can now submit the application digitally and enjoy shortened processing times.

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Frequently Asked Questions

What is BAFA? arrow

The abbreviation BAFA stands for the Federal Office of Economics and Export Control. It reports to the Federal Ministry for Economic Affairs and Climate Protection (BMWK). His tasks include, among other things, awarding funding for the private and commercial expansion of renewable energies as well as for individual energy-saving measures.

What is the difference between BAFA grant and KFW loan? arrow

The two funding programs differ in the type of funding and the projects supported: BAFA only supports individual measures such as the installation of an energy-saving heater or a heat pump. The KfW, on the other hand, promotes the comprehensive renovation of buildings into efficiency houses or their purchase.

Another difference lies in the funding modalities: BAFA does not grant loans. This means that you receive a subsidy, but you don't have to pay it back. The BAFA Hub funding, on the other hand, is “just” a loan that you receive at low-interest rates.

The most important differences at a glance:

Characteristic BAFA funding KFW loan
Type of support Promotion of individual measures (e.g. energy-saving heating) Loan with repayment and possible repayment subsidies
Type of financing Grant without repayment Loan with repayment and possible repayment subsidies
Application Applying for grants from BAFA Loan application at KfW
Type of measures Individual renovation measures according to the BEG EM (e.g. heating, insulation) Kreditantrag bei der KfW
Can be combined with other funding Can be combined with other funding Cannot be combined with BAFA grants

What are individual measures within the meaning of the BEG EM? arrow

Individual measures are renovations that do not result in an overall efficiency house standard for your building. For example, the replacement of windows or doors and the insulation of external walls are supported. In this context, you can also receive support for the specialist planning and construction supervision of your project.

Who can apply for BAFA funding? arrow

Eligible to apply are:

  • Private individuals
  • Pursue
  • Freelance
  • Homeowners associations
  • Municipalities, local authorities, special purpose associations
  • Non-profit organizations and cooperatives

The federal and state governments, their institutions and manufacturers of eligible systems are not eligible to apply.

Notice

You can submit the funding application yourself or commission a third party to do so. Our energy consultants will be happy to submit the application for you.

How long does it take to process my funding application? arrow

Like every authority, BAFA also has a high workload. Therefore, the BAFA processing time can take several months. The good news: Your renovation doesn't have to wait. You can begin your action as soon as you have officially sent the application to the office.

Is there a deadline within which I have to carry out subsidized measures? arrow

As soon as BAFA has approved your funding, the so-called approval period begins. This means that you have a total of 24 months from receiving the funding notification to carry out the measure.

Under certain conditions, this period can be extended by a further 24 months. For this extension, you must prove that you were unable to implement the measure within the first period due to your own fault. So you have a maximum of 48 months to complete your renovation.

You must provide proof of successful completion of the measure no later than six months after the end of the approval period. If the renovation took place within the regular approval period, you must provide proof after 30 months at the latest. If the extension is used, proof must be provided after 54 months at the latest.

Does the credit institution grant loans directly? arrow

No, KfW does not grant loans itself. Instead, you apply for financing through your house bank, savings banks, commercial banks, building societies, or cooperative banks.

How long does it take until I receive my grant? arrow

Your funding will be paid out as soon as the measure is completed. This means that you first have to pay for all consulting and craftsman services yourself in full.

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